Danish-based Bunker Holding Group, the world’s largest bunkering company, has secured a new sustainability-linked unsecured committed bank credit facility of $1.11 billion from an international bank syndicate.
The company’s funding framework has also been raised to $3.2 billion, a 33% increase compared to the previous framework. The company said the increased credit facility will allow it to extend credit lines to clients as the bunkering industry undergoes a transition to alternative fuels that is driving up prices.
The new credit facility is backed by 15 banks from Europe, Middle East, and Asia, adding an increased global aspect to the banking partners that comprise the company’s new credit syndicate, according to BHG. “This underscores the trust shown in Bunker Holding Group across international markets,” the company said in a statement.
Bunker Holding Group CEO, Keld R. Demant, expressed his appreciation for the trust shown by the company’s worldwide banking partners. “This has resulted in a record-setting credit facility and shows a strong commitment towards our strategy for our future growth,” he said.
Bunker Holding Group was able to secure its previous largest credit facility backed by 12 banks in 2019 in the lead up to the International Maritime Organization’s low sulphur fuel regulation in 2020. Building on that bank syndicate, strategic banks from both Asia and Middle East have now joined.
“Having now entered into agreements with new banks in our busiest regions is a major step forward, as it allows us to stay even closer to where our clients operate,” said Christian Mens, Group Treasury Director at Bunker Holding Group. “Adding banks and raising our credit capacity sends a strong signal, and I look forward to working with both previous and new partners.”
ESG-Linked Credit Facility
The new credit facility is also linked to sustainability, making it the first ESG-linked credit facility deal secured by Bunker Holding Group. The company has been focusing on the sustainability agenda and published its first-ever ESG report last year. By adding KPIs towards environment, social, and governance in the credit facility, it demonstrates the joint commitment to moving the needle on these important issues.
“We received very positive feedback from banking partners after publishing our first ever ESG-report in 2022. It’s evident that this agenda is very important and that it will continue to be so in the future, and at Bunker Holding Group, we are leaning heavily into this. Staying ahead of the curve in this matter is not just good business, it is also vital to our future as an industry,” says Michael Krabbe, Chief Financial Officer at Bunker Holding Group.
The bank syndicate closed the new running five-year facility as of April 2023.
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